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Sarpy County and Cities Wastewater Agency adopts FY25-26 budget, projects $934,000 shortfall
Summary
The Sarpy County and Cities Wastewater Agency approved a FY25-26 budget that shifts the agency from construction to operations, forecasts a $934,000 net income loss, and assumes $8 million in right-of-way acquisition funding from the WIFIA loan pending lender approval.
The Sarpy County and Cities Wastewater Agency on May (meeting date not specified in transcript) approved its fiscal year 2025–26 budget, moving the agency’s finances from a primary construction posture into an operations footing while forecasting a $934,000 net income loss for the year.
The budget presentation by agency treasurer Mark Sedout said the agency expects connection fees and rate revenue to cover debt-service obligations for the year, while other operational costs will be paid from cash on hand as the system transitions to regular operations. Sedout said the agency projects a $2.2 million surplus in connection fees versus prior model expectations and a lower overall borrowing amount through WIFIA, both of which improved the debt-service coverage compared with last year’s rate model.
Sedout outlined several notable line-item changes: overall income is reduced because the agency is not borrowing as heavily for construction; operations and maintenance (O&M) spending is down about 19 percent, while O&M equipment rises 86 percent as the agency plans to buy a bobcat and a UTV (a roughly $100,000 net reduction between the two line items). Personnel and benefits increase about 12 percent, reflecting bringing the treasurer position in-house and adding staff; health insurance costs were discussed as rising roughly 32 percent based on Sarpy County plan estimates.
The budget assumes the agency will use $8,000,000 from the WIFIA loan to pay for right-of-way acquisition for upcoming phases. Agency staff reported that WIFIA officials had indicated reluctance to allow use of remaining WIFIA funds for easement acquisition but that negotiations were ongoing; the budget was approved while that discussion continues. Sedout cautioned that any change in funding assumptions would require returning to the board for adjustments.
Sedout also said the agency’s ending cash balance for FY24–25 is now forecasted to be close to $10 million, above the previous model’s projection of $7.8 million, and that the agency plans to reduce reliance on outside consultants as staffing increases and operations stabilize.
Votes at a glance - Consent agenda: motion by David Klug; second by Gretna (motion carried; “Yay is 5,” with Sarpy and Bellevue recorded as absent in the roll call). (Transcript record: motion and roll call.) - Resolution 2025-007 (FY25–26 budget): motion by Springfield; second by Papillion. Motion carried (vote recorded and passage announced during the meeting). (Transcript record: motion, second, and vote.) - Professional services (Evoqua Water Technologies, chemical supply): motion carried unanimously (6–0). (Transcript record: discussion and vote.) - Resolution 2025-009 (growth management plan exception for 17801 Buffalo Road, Springfield): motion carried. (Transcript record: discussion and vote.)
Why this matters: The budget sets the agency’s first full-year operating plan as the integrated wastewater system moves from major construction to active operation and maintenance. The assumptions about WIFIA funding for easement acquisition and the projection of ending cash affect the agency’s near-term capital decisions and its debt-service covenant headroom.
What’s next: Staff said it will continue to monitor the rate model, pursue WIFIA negotiations on allowable uses of loan proceeds, and return to the board if funding assumptions change.
